Leapmotor, backed by Stellantis, moves forward along the lines of BYD, extending its production of battery packs to other automotive producers
Leapmotor, a leading electric vehicle (EV) manufacturer, has announced ambitious plans to expand its self-development capabilities beyond the core "three electric" systems and intelligent features. The company aims to develop high-value components in-house where feasible, following a strategy similar to that of market leader BYD [1][2][3].
At the heart of Leapmotor's expansion is the production of in-house developed battery packs. While the company currently sources battery cells externally, primarily from CATL and other suppliers, its subsidiary Lingxiao Energy handles the pack design and assembly. This approach is designed to achieve greater vertical integration of the supply chain, replicating BYD's dual business model of selling vehicles and supplying components externally [1][2].
Unlike BYD, which has a fully vertically integrated battery production system, Leapmotor currently relies on externally sourced cells. BYD designs and manufactures its own cells and battery packs, allowing it to supply components both as part of complete vehicles and to third parties. Leapmotor seeks to emulate BYD's success by developing battery packs internally while sourcing cells externally, a move aimed at reducing costs and building competitiveness in both the passenger and commercial vehicle sectors [1][2].
In the first half of 2024, commercial vehicle battery installations increased by 126.2% year-on-year, reaching 51.4GWh. This growth presents a significant opportunity for Leapmotor, which is now supplying self-developed battery packs to the commercial vehicle sector [4].
Leapmotor has secured orders from more than five new energy commercial vehicle customers, including Xeazon New Energy Vehicle Co., Ltd., which is reportedly in advanced negotiations with the company [6][7]. The commercial vehicle sector offers fewer competitive barriers and greater growth potential compared to the passenger vehicle market for component supply.
The "Findreams" group, spun off from BYD's component divisions, now competes with outside suppliers, serving any automaker. Established by Stellantis-backed Leapmotor's competitor, BYD, from 2019 to 2021, the "Findreams" group covers R&D, manufacturing, and sales of critical components like batteries, motors, and inverters [5].
Leapmotor's deliveries exceeded 50,000 units in July alone, marking a significant milestone for the company. With its focus on battery pack development and supply, Leapmotor is positioning itself to capitalise on the growing electric vehicle market, particularly in the commercial vehicle sector.
References:
- Leapmotor to Develop High-Value Components In-House
- Leapmotor's Expansion Strategy: In-House Battery Packs
- Leapmotor Aims to Match BYD's Success
- Commercial Vehicle Battery Installations Soar
- The "Findreams" Group: BYD's Component Powerhouse
- Leapmotor Secures Orders from New Energy Customers
- Xeazon in Advanced Talks with Leapmotor
Leapmotor, with its focus on battery pack development and supply, is positioning itself to capitalize on the growing electric vehicle market, particularly in the commercial vehicle sector, similar to market leader BYD that designs and manufactures its own cells and battery packs. This approach is part of Leapmotor's strategy to achieve greater vertical integration of the supply chain by developing high-value components in-house where feasible.
